AxxIS250

Ok so I found this on a website the MF is
Money Factor = Lease Charge ÷ ( (Net Cap Cost + Residual) x Term )

I see something on my contract that says rent charge not sure if that's the same
But rent charge is 3137.40 divided by ( net cap cost which was 36841 plus residual which is 24775) times term of 36 months it did come out to 0.001

Am I correct sorry I'm so new at this...:/

Also I had a credit score of 730 n my consigned of 850

XBluez

I just got back from a Lexus dealer in NY not sure if this is good or not.
The dealer gave me 2 quotes for
IS350 F Sport

MSRP $49,000
Negotiated price $44,000
Annual Miles 12,000
27 month lease
Residual $34,589 about 78%
MF, I'm not sure if this is it but he told me the interest is 8.875% isn't that really high? Cause i live in Brooklyn
MSD's none since NY doesn't offer MSD

$425 monthly with $2,500 out of pocket or
$495 monthly with $375 out of pocket

Thanks

toyotatom

Something is not right with your interest, if they were charging you 8.875% your payment would be over $625.00 a month. The interest charge should 2 to 3 % tops. Its got nothing to do with Brooklyn either.
That is a good negotiated price for NY though.

XBluez

Thats most likely the tax then.
Is there any way to lower the monthly? Besides putting more for down payments?
Like increase 27 months to 36 perhaps?

bill123

lower your miles to increase the RV. that will lower your payments

gmanusmc

That residual is actually about 71% - it's calculated off the msrp.

XBluez

Lower from 12k to 10k a year?
Don't really think 10k a year is enough tho, even 12k is kind rough already
But on the second hand, if i decide to finance the car at the end of the lease then it doesn't matter right?
Which i believe most likely will happen since its a great car i believe.

Ohhh, i see. Thanks


But overall is the price good?
Now the only thing thats stopping me is the insurance.
Its ridiculously high
I first called geico and provided with a NY long island address and they quoted me $3,200 a year
Then i decided to give those insurance broker a try with the same address, ended up with $2600 but is still quite high i believe ;\

toyotatom

It doesn't help increasing the length of the lease, the RV changes also making the payments almost the same. Your insurance does seem high but not much you can do about that

SW17LS

If you think there is a high probability you may buy and finance the car at the end, you should buy it from the start.

Leasing then buying in general is more expensive than just buying it from the get go.

toyotatom

I agree with you if you can afford the higher payment associated with financing first. Probably will need a higher down payment also.

SW17LS

Assuming you have good credit you can finance with no down payment.

Also, I would advise that people NOT use leasing as a way to get into a car that they otherwise could not afford the higher monthly payment to purchase. Leasing is a great tool for the right consumer, but it shouldn't be used as a way to stretch out the time you can take to finance. There are costs, there are risks. What if your situation changes between now and 3 years from now when you go to buy it? What if interest rates are much higher 3 years from now and it makes it so that you cannot buy it? You've spent all this money for 3 years and have no car.

You're much better off to finance it from the get go at the longest term you can than you are to lease it and then try and buy it in 3 years.

SC300Es

That's the NYC sales tax rate. Does the monthly price include sales tax?

gmanusmc

Plus the fact that if you finance right from the start, a car like a Lexus will probably have some equity in it after 3 years of payments so you'll be able to easily trade it in on your next vehicle if so inclined.

SW17LS

Depends on how long it's financed for...

gmanusmc

You're right - anything beyond the standard 60 month term coupled with a low rate will affect being able to build any equity until well into the loan term. My wife and I have been fortunate - got great lease terms on our 09 and 11 ISs and they both had equity after 24 months. Don't think we'll be as fortunate with the ES we have now. No problem - we're already midway through the 24 month lease.